Why Bitcoin’s Price Can Resume Rally Before It Drops Below $56.5K

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Bitcoin’s price is reversing losses from $60,000 to the US dollar. As long as there is no close between $56,500 and $55,250, BTC is likely to begin a new uptrend.

Bitcoin’s price has steadily risen above the $55,500 resistance level against the US dollar over the last week. The Bitcoin/USD pair burst through the $58,000 resistance level and settled above the 100-day simple moving average (4-hours).

The pair even broke through the $59,500 barrier and spiked past the $60,000 resistance. There was, however, no near above the $60,000 mark. A peak was created around $60,030, and the price began to fall again. It surpassed the $58,500 and $58,000 resistance thresholds.

The price dropped below the 23.6 percent Fib retracement stage of the upward advance from the swing low of $50,465 to the swing high of $60,030. On the 4-hours chart of the BTC/USD pair, there was also a split below a connecting bullish trend line with support around $59,000.

Bitcoin Price

Source: BTCUSD on TradingView.com

The pair checked the funding zone of $56,500 as well as the 100 clear moving average (4-hours). On the same map, another bullish trend line is emerging with support at $56,800.

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If the price breaks below the trend line support, $56,500, and the 100 simple moving average (4-hours), there is a risk of a large decrease to $55,250. It is similar to the 50% Fib retracement stage of the upward step from the swing low of $50,465 to the swing high of $60,030. Any more damages could necessitate a test of $53,800.

 

Fresh Increase in BTC?

There is a risk of a new raise if bitcoin remains above the $56,500 support and the 100 simple moving average (4-hours).

The first significant resistance is located around the $58,000 mark. A strong close above $58,000 could pave the way for a new advance towards the key $60,000 resistance zone. The next major impediment is about $62,000.

Technical indicators

4 hours MACD – The MACD for BTC/USD is gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is now well below the 50 level.

Major Support Level – $56,500

Major Resistance Level – $58,000

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